Section 75 Explained: How Your Credit Card Protects Purchases up to £30,000

Most people know their credit card earns them points or lets them spread the cost of a big purchase. Far fewer realise it also comes with one of the most powerful pieces of consumer legislation in the UK: Section 75 of the Consumer Credit Act 1974. Use it correctly and your card issuer becomes jointly responsible — in exactly the same way as the retailer — if something goes wrong with a purchase worth between £100.01 and £30,000. That is not a bank goodwill gesture. It is the law.

This guide explains what Section 75 is, who it covers, the quirks you need to know about (including why PayPal can catch you out), how it compares with chargeback, and — most importantly — the exact steps you take when you need to make a claim.

What Is Section 75?

Section 75 is part of the Consumer Credit Act 1974. It creates what lawyers call “joint and several liability” between your credit card provider and the retailer or trader you bought from. In plain English: if the seller breaches their contract with you or misrepresents what they are selling, you can claim your money back from your card issuer — not just from the seller.

This matters enormously when a company goes bust and you cannot pursue the original seller, or when a seller simply refuses to engage. Your card issuer has deep pockets and is regulated by the Financial Conduct Authority (FCA). You are not chasing a liquidator. You are holding a financially robust institution jointly responsible for the same debt.

The protection was written into law more than fifty years ago and has not been watered down. As of June 2026, the thresholds remain exactly as originally set.

The Price Range: £100.01 to £30,000

Section 75 applies when the total price of the item or service is more than £100 and no more than £30,000. A few important points on how those thresholds work:

• It is the item price, not the amount you put on the card. If you pay a £50 deposit by credit card on a £2,000 holiday, you are still protected for the full £2,000 — because the purchase price falls within the band.
• Exactly £100 is not covered. The law says the cash price must exceed £100 — so a purchase of exactly £100.00 falls outside Section 75. The protection kicks in from £100.01 upwards.
• Above £30,000, you are not covered under Section 75, though other legal routes (such as the Consumer Rights Act 2015) may still help you.
• Multiple items on one order. If you buy several items in a single transaction that together cost more than £100, the whole transaction may be covered — even if individual items are cheaper than £100. But if each item is a separate transaction at a separate price, each one must individually exceed £100.

Joint and Several Liability: What It Really Means

“Joint and several liability” is the legal engine that makes Section 75 so valuable. It means you can pursue either the seller or your card issuer — or both simultaneously — for the full amount. You do not have to exhaust every avenue with the retailer before turning to your card company. You do not have to wait for the business to enter administration. You simply write to your card issuer and invoke your legal right.

Your card issuer cannot legally fob you off by saying “this is nothing to do with us” or “contact the retailer first.” They share the legal liability from the moment the transaction takes place. If they reject a valid claim, you can escalate to the Financial Ombudsman Service (FOS) — and they frequently rule in the consumer’s favour.

Section 75 vs Chargeback: Which One to Use?

Section 75 is often confused with chargeback, but they are completely different tools. Knowing which to reach for first can save you time and money.

When to use chargeback instead: If you paid by debit card, or if the purchase was £100 or under on a credit card, Section 75 does not apply — but chargeback might. Chargeback is available on Visa, Mastercard and American Express cards of all types. The catch is that it is not a legal right; the card schemes can change their rules, and your bank can reject a chargeback request. Section 75 is enforceable by law. Where both apply, many advisers recommend trying Section 75 first for stronger protection.

Common Scenarios Where Section 75 Saves You

Airline or travel company goes bust

You booked flights costing £450 per person and paid the full amount on your credit card. The airline ceases trading before your travel date. Your credit card issuer is jointly liable for the full purchase price, even though the airline no longer exists. You would make a Section 75 claim directly to your card company. Note: if you paid through a travel agent, the rules about the “debtor-creditor-supplier” chain (explained below) apply — ensure the credit card was used to pay the agent directly, not as a wallet top-up.

Retailer goes bust before delivering goods

You ordered a £1,200 sofa, paid a £150 deposit by credit card, and agreed to pay the balance in cash on delivery. The furniture company enters administration before the sofa arrives. Because the total purchase price (£1,200) is within the Section 75 band, your card issuer is liable for the entire £1,200 — not just the £150 deposit you put on the card. This is one of the most important things many people miss about Section 75.

Faulty goods or misrepresentation

You paid £800 for a laptop and it developed a fault within the first month. The retailer is ignoring your emails. Under Section 75, you can claim a repair, replacement or refund directly from your credit card company without having to keep chasing the retailer. The card issuer shares the same liability as the seller for any breach of contract.

Deposit disputes on services

You paid a £200 deposit by credit card to a kitchen fitter for a £5,000 job. The fitter took the deposit and never returned your calls. Section 75 covers the full contract value of £5,000 — your card company is jointly liable, even though you only charged £200 to the card. Citizens Advice and the Financial Ombudsman have consistently backed consumers in these situations.

The PayPal Problem (and Other Third-Party Pitfalls)

Section 75 requires a direct link — called a “debtor-creditor-supplier” (DCS) chain — between you, your card issuer, and the seller. When you pay through a third party such as PayPal, that chain can break, and your Section 75 protection may vanish.

Here is how the risk plays out with PayPal specifically:

• PayPal as a payment processor (guest checkout): If you use your credit card at a merchant’s checkout and PayPal simply processes the payment on behalf of the seller — you never log into a PayPal account — the FOS has ruled that the DCS chain may remain intact. A landmark 2022 case (Dawson v Lloyds) saw the FOS order Lloyds to pay out a Section 75 claim even though PayPal was used as a payment processor, because the consumer was not logged in to a personal PayPal account.
• PayPal wallet (logged-in account): If you top up your PayPal balance with your credit card and then pay a seller from that balance, the DCS chain is broken. Your card issuer funded PayPal, not the seller. Section 75 does not apply in this case.
• Other digital wallets: The same logic applies to Apple Pay, Google Pay and similar wallets — in most standard cases the underlying card transaction is with the merchant and protection is retained, but always check with your card issuer if in doubt.

The safest approach: whenever possible, pay the trader directly with your credit card to preserve your Section 75 rights without ambiguity.

How to Make a Section 75 Claim: Step by Step

If something has gone wrong, here is exactly what to do.

• Step 1 — Confirm you qualify. Check that: the purchase was on a credit card (not debit); the total price of the item or service was more than £100 and no more than £30,000; and there was a breach of contract or misrepresentation by the seller (e.g. goods not delivered, company insolvent, faulty product, service not provided).
• Step 2 — Try the retailer first (optional but sensible). You are not legally required to contact the retailer before claiming, but a quick email or call creates a paper trail. If the business has collapsed, skip straight to Step 3.
• Step 3 — Contact your credit card provider. Call the number on the back of your card or log in to your online banking. Tell them you want to make a Section 75 claim. Many providers have a dedicated claims process. You can also write to them — Citizens Advice provides a template letter for equal liability claims.
• Step 4 — Provide evidence. Include: the date and amount of the purchase; what you bought and from whom; the nature of the problem (goods not received, faulty, company insolvent); evidence of any attempt to resolve with the seller; what remedy you are seeking (full refund, partial refund, etc.).
• Step 5 — Wait for their decision. Your card issuer should respond within eight weeks. If they pay out, the refund will go to your credit card account.
• Step 6 — Escalate to the Financial Ombudsman if rejected. If your card company refuses a valid claim, complain formally in writing first. If they still reject it — or do not respond within eight weeks — take the case to the Financial Ombudsman Service (FOS) at financial-ombudsman.org.uk. The FOS is free to use and has sided with consumers in many Section 75 disputes, including cases involving PayPal.

Frequently Asked Questions

Does Section 75 apply to debit cards?

No. Section 75 applies only to purchases made on a credit card. If you paid by debit card, you have no Section 75 rights. Your best option in that case is chargeback, which is available on Visa, Mastercard and Amex debit cards and has no minimum purchase threshold — though it is not a legal right and carries a time limit of around 120 days.

What if I only paid a small deposit on my credit card?

You are still covered for the full purchase price, provided that price falls within the £100.01–£30,000 band. If you paid a £100 deposit on a £3,000 holiday and the travel company collapsed, your card issuer is liable for the full £3,000 — not just the £100 deposit. This is one of the most powerful and least-understood aspects of Section 75.

Is there a time limit to make a Section 75 claim?

There is no specific statutory time limit written into Section 75 itself, but general contract law limits (typically six years in England and Wales, five in Scotland) apply. In practice, you should claim as soon as you know something has gone wrong. Waiting years could weaken your evidence and make the claim harder to pursue. For chargeback, the limit is generally 120 days from the transaction or expected delivery date, which is much tighter.

My card company has rejected my claim. What can I do?

First, put your complaint in writing to the card issuer’s formal complaints team and reference your legal right under Section 75. If they do not resolve it within eight weeks, or you are unhappy with their response, take the case to the Financial Ombudsman Service (FOS). The FOS is free to use, independent, and has consistently ruled in favour of consumers on valid Section 75 claims — including in cases where card issuers argued that PayPal broke the DCS chain.

Can I use Section 75 and chargeback at the same time?

You can pursue both routes, but you cannot recover the same money twice. In practice, Section 75 is the stronger option for credit card purchases over £100, because it is a statutory right and makes your card issuer jointly liable. Chargeback is worth knowing about as a fallback — particularly if your credit card issuer is slow to respond — but you should tell your card company if you are pursuing both so they can coordinate the recovery from the seller’s bank.

Make the Most of Your Credit Card Rights

Section 75 is one of the best reasons to pay for larger purchases by credit card rather than debit card or bank transfer. A credit card is not just a payment method — it is a legal shield between you and a defaulting retailer. The key habits that keep you protected are simple: pay at least part of any purchase over £100 on a credit card, pay the card directly to the retailer (not through a third-party wallet), and keep a record of your purchase confirmation and any correspondence.

If you are looking for a credit card with a strong track record and a sensible rate, our guides to the best 0% purchase credit cards and how to choose the right credit card for you will help you pick the one that fits your spending.

This article is for general information only and does not constitute legal or financial advice. Rules are correct as of June 2026 but may change. Always verify your position with the FCA (fca.org.uk), Citizens Advice (citizensadvice.org.uk) or a qualified adviser before taking action.